Transmission Line Update

RNS Number : 0984Z

Tlou Energy Ltd

16 September 2020

 

16 September 2020

Tlou Energy Limited

("Tlou" or "the Company")

Transmission Line Update

Tlou Energy Limited is an ASX, AIM and BSE listed company focused on delivering power in Botswana and southern Africa through the exploration and development of gas and solar power.

Key Points:

· Pre-qualification tender documents prepared

· Tender advertised and documents available online

Transmission line detailed design update

The Company has engaged Mott MacDonald engineering consultants to work on the detailed engineering and design of the proposed transmission line to connect Tlou's Lesedi Power project to the electricity grid in Botswana.

As announced previously, Mott MacDonald are now working on the implementation stage of the proposed 66kV transmission line.  This includes preparation of Pre-qualification (PQ) documents with the objective of Tlou selecting a short-list of pre-qualified bidders who will be invited to bid for the construction of the transmission line and supporting infrastructure.

The following two PQ documents have been prepared:

· Pre-Qualification of Bidders for the Design and Build contract for the Substation(s) Works

· Pre-Qualification of Bidders for the Design and Build contract for 66kV Overhead Transmission Line Works

These tenders have been advertised in the local press in Botswana and the documents are also available on the Company's website: http://tlouenergy.com/tender-documents. The closing date for submissions is 2 October 2020.

The implementation stage is expected to be completed later this year, conditional on not experiencing undue delays outside Tlou's direct control.  Thereafter, the Company will request tenders for construction of the transmission line and substation works from successful pre-qualified bidders.

Subject to the receipt of acceptable tenders, available funding and on-the-ground access, the Company plans to commence construction as soon as possible.

By Authority of the Board of Directors

Mr Anthony Gilby

Managing Director

For further information regarding this announcement please contact:

Tlou Energy Limited	[phone]
Tony Gilby, Managing Director
Solomon Rowland, General Manager
Grant Thornton (Nominated Adviser)	[phone]
Colin Aaronson, Harrison Clarke, Samantha Harrison, Seamus Fricker
Shore Capital (Broker)	[phone]
Jerry Keen, Toby Gibbs, John More

Company Information

Tlou Energy is focused on delivering Power solutions to Botswana and southern Africa to alleviate some of the chronic power shortage in the region.  Tlou is currently developing projects using gas and plans to combine this with solar power to provide a cleaner base load power source. 

Botswana has a significant energy shortage and generally relies on imported power and diesel generation to fulfil its power requirements.  Tlou's Lesedi power project provides investors with access to a compelling opportunity to displace expensive, carbon intensive diesel and imported coal-fired electricity with a more environmentally friendly alternative.

In addition to plans for cleaner energy, the Company is also committed to developing community projects in Botswana adding real value to peoples' lives in a region with sparse services and where few opportunities exist for the local population.  The Company aims to assist communities to become self-sustaining, develop business opportunities, improve access to education and create opportunities for self-employment and wealth creation.

The Company is listed on the Australian Securities Exchange, London's AIM market and the Botswana Stock Exchange and is led by an experienced Board, management and advisory team.

The project is significantly de-risked.  The Company produced its first gas in 2014, has a Mining (or development) Licence valid to 2042 and 10 Prospecting (or exploration) Licences.  The Company's project acreage covers a vast area spanning approximately 9,300 Km² in total.

Tlou's 'Lesedi' and 'Mamba' projects already benefit from significant independently certified 2P gas Reserves of ~41 Billion Cubic Feet (BCF).  In addition, 3P gas Reserves of ~427 BCF and Contingent Gas Resources of ~3,043 BCF provide significant additional potential.

The Company is planning an initial scalable power project.  Following successful implementation of this first scalable project, the Company looks forward to evaluating longer-term prospects for the delivery of additional electricity to Botswana and to neighbouring countries.

Forward-Looking Statements

This announcement may contain certain forward-looking statements.  Actual results may differ materially from those projected or implied in any forward-looking statements.  Such forward-looking information involves risks and uncertainties that could significantly affect expected results.  No representation is made that any of those statements or forecasts will come to pass or that any forecast results will be achieved.  You are cautioned not to place any reliance on such statements or forecasts.  Those forward-looking and other statements speak only as at the date of this announcement.  Tlou Energy Limited undertakes no obligation to update any forward-looking statements.

 

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